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Windows 7: Cursor jumps all over after upgrade, NOT the touch pad

Dell Inspiron 1525 was freezing up as I type job apps (I was laid off so I need this fixed quickly) so a repair service we use (1 person) looked and upgraded me to Windows 7 from Vista. I have two issues now.

It no longer locks up but the cursor jumps all over the page causing me to make mistakes typing and garbling sentences. It is not the touch pad. I have even covered it with cardboard and it still does it. The repair tech doesn't seem interested in finding the cause so I am stuck.

Spell check is now saying portions of words are wrong such as the "ood" in Good Evening in this post. It is doing this for both times I have written the word.

I have researched this and find similar but not close enough possible solutions.

Here is what I have found and tried.

I have lowered the cursor speed to the third line. It seemed to help somewhat but now it is back to the same problem.

I have scanned with Malwarebytes and my AVG antivirus. Both are up to date and nothing has been found.

I performed a disk cleanup and defrag, it did not help.

I am not a computer expert so this is the extent of my attempts.

This happened once a year ago with Vista and the service tech found it to be a driver issue on a forum and fixed it. He does not remember doing this and I believe he thinks I am insane.

Can someone please help me with this? I look forward to hearing from everyone.

Click on Start, type devmgmt.msc then click on devmgmt.msc at the top of the window.
Expand Mice and other pointing devices.
Double click on the mouse to open the Properties dialog.
Click the Driver tab then click on Update Driver.

See what happens. If it doesn't help, please post a screen shot of the the Device Manager with Mice and other pointing devices expanded.

Once you have the image saved, click on the Paperclip Icon next to the Smiley Icon. In the Manage Attachments window, click Browse and navigate to where you saved the image and select it.
Click the Upload button.
Close the Manage Attachments window.
Click on the Paperclip Icon again and select the image you uploaded. It will be placed in your post.

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